The Government was today accused of "ignoring" concerns over the future of the Post Office by remodelling smaller sites into so-called locals.

The Business, Innovation and Skills select committee said in a report earlier this year that reduced services offered in some locals ran the risk that they may become unsustainable.

The MPs called for a "rigorous assessment" of the scheme, adding it was "clear" that more work needed to be done.

But in its response today, the Government said the locals had been well received by customers, particularly for their extended opening hours.

Converted branches had reported an average increase in both post office and retail sales of 9%, improving their sustainability, said the Government.

"As a result of the comprehensive pilot phase, and the positive customer reaction, the Government has confidence that the local model will be a success in suitable branches.

"However, in line with best business practice, we will ensure Post Office Ltd continues to monitor the performance of the model and to make changes should a need become apparent."

The Government added it did not share the committee's concerns that the new Locals model could result in a small number of major retailers running most Post Office outlets.

Billy Hayes, general secretary of the Communication Workers Union, commented: "The Government is ignoring the fears of postmasters and the communities they serve which are being betrayed by the failing approach to the Locals model.

"We feel the Government has unjustifiably ignored the key recommendations in the select committee's report and is in denial about the serious flaws in the Network Transformation plan.

"The Government will not be able to sustain their statement of 'no programme of closures' in the long term, due to the lack of take-up of the new operating models.

"If the project was as successful as is being purported then the Post Office would surely have been inundated with requests to convert. However, this has not happened and the Post Office is desperately trying to seek volunteers, regardless of how this may affect communities."

Andy Burrows, of Consumer Focus, said: "The committee was right to say the new Post Office Local model must help deliver a more sustainable network, and at the same time ensure quality and service for consumers.

"Locals offer some benefits for customers including longer opening hours, but they must also be judged on whether they offer customers the convenience, accessibility and high quality service they need."